Chances are that if you own a flat in Bishops Stortford you actually own a long leasehold interest over your property
Leasehold premises in Bishops Stortford with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you increased control over the value of your Bishops Stortford leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Jack was the the leasehold proprietor of a 2 bedroom apartment in Bishops Stortford on the market with a lease of just over sixty years unexpired. Jack on an informal basis spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Jack to invoke his statutory right. Jack obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
Mr and Mrs. N Parker bought a ground floor flat in Bishops Stortford in April 2007. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparable premises in Bishops Stortford with an extended lease were valued about £250,000. The mid-range amount of ground rent was £50 billed yearly. The lease finished in 2094. Considering the 69 years remaining we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.
In 2014 we were called by Mr Kai Roberts who, having moved into a studio flat in Bishops Stortford in January 2011. The dilemma was if we could approximate the price could be to prolong the lease by an additional years. Comparable premises in Bishops Stortford with a long lease were worth £285,000. The average amount of ground rent was £55 invoiced annually. The lease ran out in 2105. Given that there were 80 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including costs.